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Commission approval of Federal Register notice – The Commission has approved publication of a Federal Register notice seeking public comments on the effectiveness and impact of the FTC’s Used Motor Vehicle Trade Regulation Rule, 16 C.F.R. Part 455, commonly known as the Used Car Rule. The notice will be published soon and is available now on the FTC’s Web site as a link to this press release. The Rule, promulgated in 1984 and updated in 1995, requires used car dealers to disclose on a window sticker (the Buyers Guide) whether they are offering a dealer warranty, and if so, its basic terms and conditions. The Rule also requires that dealers use Spanish-language versions of the Guides when conducting sales in Spanish.

The notice seeks comments on a range of issues including, among others, the following two. First, it asks whether a bilingual Buyers Guide would be useful or practicable, as well as what form such a Buyers Guide should take. Second, new warranty products, such as certified used car warranties, have become increasingly popular since the Rule was last reviewed. The notice seeks comments on possible changes to the Buyer’s Guide that reflect the various types of warranties potentially available today. The notice also seeks comments on other issues, including the continuing need for the Rule and its economic impact, the effect of the Rule on deception in the used car market, and the Rule’s interaction with other regulations. In addition, the notice details specific areas of interest to the Commission that consumers may wish to respond to, and provides information on how comments can be submitted to the agency.

The Commission vote approving issuance of the Federal Register notice was 4-0. Public comments are being accepted through September 19, 2008. (FTC File No. P087604; the staff contact is John C. Hallerud, FTC Midwest Region, Chicago, 312-960-5615; see related press release dated December 4, 1995.)

Copies of the documents mentioned in this release are available from the FTC’s Web site at http://www.ftc.gov and from the FTC’s Consumer Response Center, Room 130, 600 Pennsylvania Avenue, N.W., Washington, DC 20580. Call toll-free: 1-877-FTC-HELP.